Advanced Micro Devices (NASDAQ:AMD) Lowered to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded AMD from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $553.72.
• AMD opened at $457.06, below its 50-day moving average of $501.61, while trading at a high valuation of 117.5 times earnings. The stock has ranged from $149.22 to $584.73 over the past year.
• Recent quarterly results exceeded expectations, with earnings of $1.66 per share and revenue of $11.54 billion, up 50.1% year over year; however, insiders have sold more than $109 million of shares over the past 90 days.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday, Zacks reports.

A number of other analysts have also issued reports on AMD. Needham & Company LLC raised Advanced Micro Devices to a "buy" rating in a research report on Wednesday, May 6th. Roth Capital raised their target price on shares of Advanced Micro Devices from $500.00 to $650.00 and gave the company a "buy" rating in a report on Friday, July 24th. JPMorgan Chase & Co. boosted their target price on shares of Advanced Micro Devices from $385.00 to $550.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Royal Bank Of Canada reissued a "sector perform" rating and set a $540.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Finally, Mizuho boosted their price objective on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an "outperform" rating in a research report on Monday, July 27th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average target price of $553.72.

Advanced Micro Devices Stock Performance

NASDAQ:AMD opened at $457.06 on Tuesday. The company's 50-day moving average is $501.61 and its two-hundred day moving average is $390.93. Advanced Micro Devices has a 1-year low of $149.22 and a 1-year high of $584.73. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market capitalization of $746.14 billion, a price-to-earnings ratio of 117.50, a PEG ratio of 4.76 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter in the previous year, the company earned $0.48 EPS. The business's revenue for the quarter was up 50.1% compared to the same quarter last year. Analysts forecast that Advanced Micro Devices will post 6.44 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 15,000 shares of Advanced Micro Devices stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $514.91, for a total transaction of $7,723,650.00. Following the completion of the sale, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. The trade was a 11.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Mark D. Papermaster sold 28,811 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $471.87, for a total transaction of $13,595,046.57. Following the sale, the executive vice president owned 1,261,461 shares in the company, valued at approximately $595,245,602.07. This trade represents a 2.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 232,577 shares of company stock worth $109,509,170. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of AMD. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at approximately $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices during the 4th quarter valued at $27,000. Basepoint Wealth LLC purchased a new position in shares of Advanced Micro Devices during the 4th quarter valued at $30,000. JNBA Financial Advisors raised its stake in shares of Advanced Micro Devices by 142.9% during the 2nd quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Finally, Graney & King LLC bought a new stake in Advanced Micro Devices in the first quarter worth approximately $31,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

Key Stories Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD’s AI infrastructure collaboration with Cisco and Saudi Arabia’s HUMAIN is gaining traction: MI355X-based systems are reportedly live and serving customers, with plans for an additional 250 megawatts beginning in 2027 and as much as 1 gigawatt by 2030. The buildout could create a significant long-term data-center revenue opportunity. AMD Saudi Arabia AI infrastructure
• Positive Sentiment: Several bullish commentaries argue that AMD could benefit from the next phase of AI spending, particularly inference workloads and server CPUs. One forecast sees the company potentially reaching a $2 trillion valuation by 2030, while analysts cited elsewhere see additional upside from current levels. AMD $2 trillion forecast
• Positive Sentiment: Tiger Global reportedly opened an AMD position while reducing its Alphabet stake, suggesting some institutional investors are rotating toward AI-chip exposure. Tiger Global AMD position
• Neutral Sentiment: AMD remains above a widely watched support level near $450, but technical coverage says higher U.S. interest rates are weighing on high-growth technology stocks and limiting near-term momentum. AMD technical levels and rates
• Negative Sentiment: J.P. Morgan reportedly views AMD as facing execution challenges relative to Nvidia. Nvidia’s investment in MediaTek and continued efforts to defend its AI-chip ecosystem also reinforce concerns that AMD must execute effectively to gain share. J.P. Morgan Nvidia versus AMD
• Negative Sentiment: Investors are also taking profits after AMD’s substantial 2026 advance. Commentary highlights valuation pressure, with the stock trading at a very high earnings multiple, while ARK Invest has continued reducing its AMD position. ARK Invest reduces AMD shares

About Advanced Micro Devices

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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